News / National
China releases $1,2 billion for Zimbabwe
10 Jan 2016 at 05:57hrs | Views
China has released a massive US$1,2 billion for major refurbishment and expansion of Hwange Thermal Power Station.
The development comes barely a month after China's President Xi Jinping's State visit that culminated in the penning of at least 12 mega-deals worth billions of dollars.
President Xi led a high-powered business delegation to Zimbabwe last December to strike deals in the key economic sectors of manufacturing, mining, agriculture, infrastructure development and power generation.
The State visit was reciprocal to that by President Mugabe who was in China in 2014.
And just as the skeptics were saying nothing would come out of the engagements, President Xi signed the release of US$1,2 billion for Hwange, with a repayment interest of two percent.
The loan, which awaits the formality of approval by Zimbabwe's Parliament, will see Hwange Thermal Power Station set up two more units with combined generation capacity of 600MW in the next three years.
According to the US energy information administration, 1MW is equal to 1 000 kilowatts, and an average household uses about 11 000kWh annually.
With 600MW, about 500 000 households can be powered.
The Sunday Mail has established that the two new units – seven and eight – will be the biggest at Hwange, whose present installed capacity is 920MW.
The power station currently consists of four units with an installed capacity of 120MW each and two units of 220MW each. However, it is only churning out an average 550MW right now.
The boost for Hwange comes after recent parliamentary approval for a US$87 million loan from India for retooling of Bulawayo Thermal Power Station to boost electricity generation from the current average of 30MW to 100MW.
The Sunday Mail has gathered that pre-commencement work is underway at Hwange.
Zimbabwe Electricity Supply Authority spokesperson Mr Fullard Gwasira said the project would be funded by China Exim Bank.
"I understand work is expected to start soon after the financial closure. Parliament is expected to ratify the agreement," he said.
The Chinese are also undertaking expansion of Kariba South Power Station to add 300MW to its current output of 750MW at a cost of US$355 million.
Kariba South is also funded through a China Exim Bank loan.
The development comes barely a month after China's President Xi Jinping's State visit that culminated in the penning of at least 12 mega-deals worth billions of dollars.
President Xi led a high-powered business delegation to Zimbabwe last December to strike deals in the key economic sectors of manufacturing, mining, agriculture, infrastructure development and power generation.
The State visit was reciprocal to that by President Mugabe who was in China in 2014.
And just as the skeptics were saying nothing would come out of the engagements, President Xi signed the release of US$1,2 billion for Hwange, with a repayment interest of two percent.
The loan, which awaits the formality of approval by Zimbabwe's Parliament, will see Hwange Thermal Power Station set up two more units with combined generation capacity of 600MW in the next three years.
According to the US energy information administration, 1MW is equal to 1 000 kilowatts, and an average household uses about 11 000kWh annually.
With 600MW, about 500 000 households can be powered.
The Sunday Mail has established that the two new units – seven and eight – will be the biggest at Hwange, whose present installed capacity is 920MW.
The power station currently consists of four units with an installed capacity of 120MW each and two units of 220MW each. However, it is only churning out an average 550MW right now.
The boost for Hwange comes after recent parliamentary approval for a US$87 million loan from India for retooling of Bulawayo Thermal Power Station to boost electricity generation from the current average of 30MW to 100MW.
The Sunday Mail has gathered that pre-commencement work is underway at Hwange.
Zimbabwe Electricity Supply Authority spokesperson Mr Fullard Gwasira said the project would be funded by China Exim Bank.
"I understand work is expected to start soon after the financial closure. Parliament is expected to ratify the agreement," he said.
The Chinese are also undertaking expansion of Kariba South Power Station to add 300MW to its current output of 750MW at a cost of US$355 million.
Kariba South is also funded through a China Exim Bank loan.
Source - sundaymail
